Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that’s why their assets under management continue to swell). We believe hedge fund sentiment should serve as a crucial tool of an individual investor’s stock selection process, as it may offer great insights of how the brightest minds of the finance industry feel about specific stocks. After all, these people have access to smartest analysts and expensive data/information sources that individual investors can’t match. So should one consider investing in VASCO Data Security International, Inc. (NASDAQ:VDSI)? The smart money sentiment can provide an answer to this question.
VASCO Data Security International, Inc. (NASDAQ:VDSI) was in 16 hedge funds’ portfolios at the end of September. VASCO Data Security International, Inc. (NASDAQ:VDSI) investors should be aware of a decrease in support from the world’s most elite money managers recently. There were 21 hedge funds in our database with VASCO Data Security International, Inc. (NASDAQ:VDSI) holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article, we will examine companies such as Encore Wire Corporation (NASDAQ:WIRE), Enanta Pharmaceuticals Inc (NASDAQ:ENTA), and Container Store Group Inc (NYSE:TCS) to gather more data points.
In the eyes of most investors, hedge funds are perceived as slow, old financial vehicles of the past. While there are over 8000 funds trading at the moment, Our experts choose to focus on the moguls of this club, around 700 funds. It is estimated that this group of investors presides over most of all hedge funds’ total asset base, and by following their best equity investments, Insider Monkey has spotted numerous investment strategies that have historically exceeded the market. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points per year for a decade in their back tests.
Keeping this in mind, we’re going to analyze the latest action regarding VASCO Data Security International, Inc. (NASDAQ:VDSI).
How are hedge funds trading VASCO Data Security International, Inc. (NASDAQ:VDSI)?
Heading into Q4, a total of 16 of the hedge funds tracked by Insider Monkey were long this stock, a decline of 24% from the second quarter. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Tiger Global Management LLC, managed by Chase Coleman, holds the most valuable position in VASCO Data Security International, Inc. (NASDAQ:VDSI). Tiger Global Management LLC has a $26.4 million position in the stock, comprising 0.3% of its 13F portfolio. The second most bullish fund manager is Private Capital Management, managed by Gregg J. Powers, which holds a $18.4 million position; the fund has 2.2% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors with similar optimism include Philippe Laffont’s Coatue Management, Brian Ashford-Russell and Tim Woolley’s Polar Capital, and Jonathan Auerbach’s Hound Partners.